How much has Social Security increased due to the COLA in the last 10 years in the United States?

( Spanish) — The COLA had its largest annual adjustment of the decade this 2022. Here, a review of the evolution of this key indicator for the millions of Americans who receive aid from Social Security each year.

What is COLA?

Social Security benefits are adjusted based on the increase in the cost of living, which is measured by the Consumer Price Index. These adjustments are called Cost-Of-Living Adjustments, or COLAs. The objective is that the benefits eligible citizens receive keep pace with inflation.

The last COLA, which came into force in 2022, was 5.9%, according to the Social Security Administration (SSA). It was the highest adjustment in decades: you have to go back to the 1980s to find higher percentages.

In the last 10 years, the second highest adjustment is that of 2012, when the COLA stood at 3.6%. At the other end of the table is 2016, in which there was no COLA adjustment, followed by 2017, where the variation was 0.3%.

Historically, according to SSA records, since benefits are adjusted according to the COLA in 1975, the highest percentage was in 1980, when the adjustment was 14.3%. Adjustments above 10% have been exceptional, however: they have only been recorded in two over 40 years.

How SSI has evolved according to the COLA

One of the benefits that is adjusted according to the COLA is the Supplemental Security Income (SSI, for its acronym in English), a program that provides financial aid to people in vulnerable situations.

To be eligible, you must be at least 65 years old or disabled, have limited resources or income, and live in the United States, among others requirements you can check here.

The table below allows you to view the changes in monthly SSI amounts over the past decade for eligible individuals and couples.

If you want information on how to apply for this benefit, you can find it here.

The COLA in a context of high inflation and stagnant economy

The COLA is expected to be announced in October, which would be in force from 2023.

In the last 12 months, the United States has accumulated an inflation of 8.3%, according to figures from the Bureau of Statistics. The biggest rise has been in energy, whose cost has shot up more than 23%, while in food the rise has been around 11%.

Adding to disappointing inflation results is a gloomy economic outlook. According to the latest forecast from the International Monetary Fund, the United States is expected to grow just 1.6% this year and expand just 1% in 2023.